Question

Explain the concept of organisational design. Discuss coordination, span of control and organisational compatibility with suitable examples.

07 Aug 2026
Answer :
Word Count : 613
Organisational design refers to the systematic process of structuring an organisation so that its people, resources, activities and authority relationships are arranged effectively to achieve predetermined objectives. In industrial project management, organisational design is particularly important because projects involve specialised activities, limited time, multiple departments, technical teams and substantial financial resources. A suitable organisational design clarifies responsibilities, reporting relationships, communication channels and decision-making authority. It also helps managers control project cost, time, quality and performance. An organisation may be designed according to functions, products, projects, geographical areas or a combination of these. For example, in a manufacturing project, separate departments may be created for engineering, procurement, production, finance, quality control and human resources. In a project-oriented structure, a project manager may have authority over engineers, supervisors, procurement personnel and other specialists working on a particular project. The choice of design depends on the size, complexity, technology and objectives of the organisation. Coordination is ____ _____ ______ _____ _________ _________ ________ ___ __________ _______ _____ ______.
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